Category: Learn to Trade

What is Fakey Pattern and How to Trade It. One of my favourite price action trading patterns is the fakey pattern. There are many reasons why I like this pattern but perhaps the most important is the meaning behind it and its ability to be a reliable indicator of potential near-term (and sometimes long-term) market direction. Let’s see what is Fakey pattern and how to trade it. What is a fakey price action pattern? A fakey pattern in the market means that a false-breakout of an inside bar pattern has occurred. In other words,…

60 Stock Tips For Investment Success We just finished up William O’Neil’s book, 24 Essential Lessons for Investment Success, and found it to be a great resource of stock tips for beginners. There are tons of great investment tips which were highlighted at the end of each chapter, and to summarize the book this post we will mention 60 of them. The best thing about the book in our opinion was the simplicity behind the material. Will O’Neil always seems to do a good job of making the read easy and…

You can’t do any better than 34 for 34. Find out how following two critical steps could allow this investment to make money for you, too! IMAGE SOURCE: PIXABAY. Volatility is a normal part of investing, but to many investors, it might appear that the fluctuations this year have been even wilder than usual. For some, it’s been too much to handle, and they’ve retreated to the sidelines. Statistically speaking, people who buy individual stocks have a 50-50 shot at making a profit. Yet even the best stock pickers tend…

All you need to know about the different types of stocks. There are two main different types of stocks: common stock and preferred stock. Common Stock Common stock is, well, common. When people talk about stocks they are usually referring to this type. In fact, the majority of stock is issued is in this form. We basically went over features of common stock in the last section. Common shares represent ownership in a company and a claim (dividends) on a portion of profits. Investors get one vote per share to elect the boardmembers, who…

What Professional Poker Players Can Teach You about Trading There are many similarities between the poker and trading worlds, and as traders, we can learn a lot from some of the top professional poker players. As Brandon Adams, a professor of behavioural finance at Harvard University’s Department of Economics said, “Some of the best candidates for Wall Street trading jobs are the professional card players at FullTiltPoker and similar web sites.” As any good poker player knows, if you manage your risk properly and execute your edge with consistency, you…

Improve Trading Results By Being Comfortable With Discomfort The other day while looking at a sports show on TV I watched an interview with Holly Holm. If you are a sports fan, and those of you who aren’t please forgive the reference, you may remember that Ronda Rousey, former women’s undefeated bantam weight mixed martial arts champion who had obliterated all of her previous opponents by knocking them out in the first few seconds of the first round, was thoroughly trounced by Holly in a knockout. Now, even if you don’t like…

Here are some disadvantages of income statements and cash flow statements in financial analysis. If there is any unfortunate thing about investing, it’s that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired. Accounting is a science, but interpreting it is very much art. Here are a few disadvantages of income statements and cash flow statements. Disadvantages of the income statement In isolation, the income statement doesn’t tell us all that much about a company. There are a…

Here yo have 10 Trading Secrets Few Investors Know. When I first started trading at the ripe age of 15 years old, it was because I had lost over $3,000 of my roughly $5,000 in life savings from mowing lawns in the dotcom crash. The mutual funds my parents had invested me in had plummeted in value. As a result of this traumatic experience, I wanted to take charge of my financial future and not leave it in the hands of an actively managed mutual fund. With no concept of trading…

Going long, Going short, Forex Order types, and Calculating Profit & Loss • Buying and selling Buying and selling are the two basic Forex order types. The basic idea of trading the markets is to buy low and sell high or sell high and buy low. I know that probably sounds a little weird to you because you are probably thinking “how can I sell something that I don’t own?” Well, in the Forex market when you sell a currency pair you are actually buying the quote currency (the second…

Chart Analysis – Riding the Waves Many people compare a lot of current price action in the markets with that of the great market crash and depression in the 1920’s. There may be some good reasons for that as price patterns do seem to repeat often. Another thing that can be useful from that era of trading is one of the technical analysis techniques, Elliott Wave, what we call Riding the Waves. I have received several emails requesting me to explain Elliott Wave Theory. While I do not use it…